UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75839  
Subject: Re: After Retirement?? Date: 9/3/1999 4:08 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I don't think anyone answered your bond fund questions--

<From a very cursory exam of her income, I know her tax rate is more than the minimum 15% but
less than the 28% rate. She has money invested in fed tax exempt govt securities mutual funds - two
to be precise. I believe she'd be better off moving that investment into the short term bond fund she
already owns - Morningstar ranks her short term bond fund as five star. Does this appear to be a
better direction or is there some other issue I should look at. My mother's mutual funds are not held
within an IRA.>

With interest rates trending upward, it is not a particularly good time to own bond funds. However, do not dismiss tax free bond funds out of hand. Some are now paying 6.6%. At many tax rates you would need to buy junk bonds to match that in taxable bonds. But do the calculation against her short term bond fund to be sure.

Cd's and Money Markets are a better fixed income investment for most at the moment unless you own the bonds themselves and plan to hold them to maturity. A short term bond fund may be the best of the bond funds at the moment.

There's a Bond and Fixed Incomes board in the Investors Roundtable folder where some of these issues are discussed. Feel free to join us there.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Should You Be an Index Investor?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement